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The Guardian - UK
The Guardian - UK
Business
Richard Partington and Heather Stewart

Fall in UK inflation to 2.5% paves way for Bank of England rate cut

City economists had forecast inflation would remain unchanged.
City economists had forecast inflation would remain unchanged. Photograph: Tolga Akmen/EPA

UK inflation fell in December, giving the chancellor, Rachel Reeves, some breathing space and paving the way for the Bank of England to cut interest rates next month.

With the government under pressure on the economy, figures from the Office for National Statistics showed the consumer prices index eased to 2.5%, below a reading of 2.6% in November, meaning prices rose at a slower rate.

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